Financials Lead Market Higher in 2012
- Posted by JC Parets
- on December 19th, 2012
How about that for a headline?
The financials, banks, $XLF, broker dealers, or all of the above. The group they call, “The Financial Sector”, has led the United States stock market higher for the year. Tell me the capital markets aren’t awesome.
I have conversations with random non-market professionals all the time. And to this day, if I tell them I’m buying banks, they get this disgusted look on their face, “Really, financials? Why?”. I tell them, “there’s one reason why – look at your reaction”. All those disastrous banks blowing up was over 4 years ago. Do you know how long that is in internet years? Instagram didn’t even exist yet.
Sentiment is a powerful thing. And it’s our choice whether to take advantage of it or not.
Bespoke Investment Group has a timely post up today showing the sector by sector performance for 2012. Financials are up almost 27% and leading the way higher for the market in 2012. How about that?
Last week an accountant friend of mine came by the office and was looking over my shoulder at my monitors. I had a chart of Spain up and told him we were buying $EWP – the Spain ETF. He had the same disgusted look on his face that I’ve seen many a time when bringing up a long financials position. Coincidence?
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J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He earned the Chartered Market Technician designation (CMT) and is a member of the Market Technicians Association. More
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